Investor Presentation

New York and Boston, October 2010

Disclaimer

This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other

advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from

sources considered by Merafe Resources to be reliable but no warranty is given that such information is accurate or

complete and it should not be relied upon as such. Views and opinions expressed in this presentation reflect the

judgment of Merafe Resources as of the date of this presentation and are subject to change. Merafe Resources will not

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any person to whom it is unlawful to make such an offer or solicitation.

Past performance is not a guarantee of future performance. The price of shares can go down as well as up and may be

affected by change in exchange rates, market conditions and risks associated with a mining venture.

2

Agenda

1. Corporate Overview

2. Operational Overview

3. Market Dynamics

4. Financial Overview

5. South African Specific Developments

6. Recent Project

7. Outlook

8. Appendix

3

1. Corporate Overview

4

Kajal Bi Kajal Bissessor CA(SA) – Finance and IR Manager

• Joined Merafe as Financial Controller in March 2009 and was appointed to current position in June 2010

• Formerly worked at KPMG as Audit Manager

Dr Jurg Zaayman – General Manager, Merafe Chrome

• Joined Merafe in 2001 as Operations Manager and became General Manager of the Boshoek plant

• In 2004 seconded to the Xstrata-Merafe Chrome Venture and was the project leader for the Bokamoso pelletising plant before being appointed to his current position in 2007

Dr. Bruce

Bruce McBride – Commercial Director

• Joined Merafe in 2001 as Commercial Director

• Formerly a Senior Partner at law firm Bell, Dewar and Hall where he specialised in commercial litigation, banking and mining law

Zanele Matlala CA(SA) – Chief Financial Officer

• Appointed CFO in October 2010 having been on the Merafe Board as a non-executive director since 2005

• Extensive financial experience at Industrial Development Corporation and formerly CFO of Kagiso Investments and Development Bank of Southern Africa

Experienced Management Team Focussed

on Delivering Returns

Stuart Elliot CA(SA) – Chief Executive Officer

• Appointed CEO in April 2010; Formerly CFO for 9 years

• Extensive experience in the accounting and corporate finance

• Formerly worked as an Audit Manager at KPMG and then in Mining Corporate Finance at FirstCorp, Gencor and Deutsche Bank

5

Largest Ferrochrome Producer in the World

Xstrata-Merafe Venture

(The Venture)

Formed 1 July 2004

20.5% of EBITDA 79.5% of EBITDA

Investor Profile

Ticker: MRF

Market Cap* (R): 3.6bn

Share price* (R): 1.45

52 week high (R): 1.90

52 week low (R): 1.17

* As at 4 October 2010

6

Second quartile of the global ferrochrome production cost curve

Lowest cost ferrochrome producer in South Africa

Stable and Supportive Shareholder Base

No.1 (resource sector) in Financial Mail’s 2009 survey for top Empowerment Companies

Top 10 in JSE’s SRI Index

7Shareholder analysis as of August 2010

34% - SA Free Float

15% - Offshore Free Float

22% - IDC

29% - Royal Bafokeng

Represented at all Levels of the Xstrata-Merafe Venture

* Merafe representation and participation

Treasury* Audit* SHEQ* Transformation* Operations* Marketing*

The Xstrata-Merafe

Venture

Joint Board*

EXCO*

Merafe Assets Xstrata Assets

8

2. Operational Overview

9

Global Chrome Reserves

10

SA Larger reserve base and experience provides competitive advantage over global

peers

73% - South Africa

12% - Zimbabwe

4% - Kazakhstan11% - Other

Recipe for Producing Ferrochrome

1.25t Slag

Furnace Ferrochrome

1.0t

Ore

2.1-3.1 t

Reductants

0.4-0.8t

Electricity

2.4-4.2 MWh

Water

2.5m3/t FeCr

11

South African Chrome Geology Favours Xstrata-Merafe

Venture’s Mines

Impala UG2

K1 UG2

K2 UG2

EPL UG2

Eland UG2

Lydenburg smelter

Lion smelter

Boshoek smelter

Rustenburg smelter

Wonderkop smelterHorizon mine

Boshoek mine

Waterval East and West mine

Kroondal mine

Wonderkop mine

Helena and

Magareng

Thorncliffe

12

Motololo UG2

Geographical Distribution Provides Competitive Advantage

13

Rustenburg (Conventional)

430ktpa - 6 furnaces

Boshoek (Outotec)240ktpa - 2 furnaces

Wonderkop (Conventional)

553ktpa - 6 furnaces

Lydenburg (Premus)396ktpa - 4 furnaces

Lion (Premus)360ktpa - 2 furnaces

• Ferrochrome capacity of 2m ktpa, 5 production sites and 20 furnaces

• 3 different technologies offer flexibility

3. Market Dynamics

14

Global Stainless Steel Production Breakdown

H1 2009

in ‘000t

H2 2009

in ‘000t

H1 2010

in ‘000t

Change

H1 2010 /

H1 2009

in %

Change

H1 2010 /

H2 2009

in %

NAFTA 702 916 1,166 +66 +27

European Union 2,668 3,290 3,870 +45 +18

Japan 954 1,652 1,681 +76 +2

S. Korea/Taiwan/India 2,337 2,776 2,870 +23 +3

Others 435 586 634 +46 +8

China 4,178 4,850 5,354 +28 +10

Total 11,274 14,070 15,575 +38 +11

Global stainless steel production was up 38% from first half of 2009 and 11% from

second half of 2009

Source: Merafe Resources / July / September 2010

Full year estimate for 2010 is 30m tonnes, an increase of 18% year on year

15

Overview of the Ferrochrome Market in 2010

Q1 2010

Price: 101USc/lb

•December 2009 China was fully stocked, pull back in Chinese demand

•January Chinese New Year holidays

•FeCr price settles down 2USc/lb from Q4 2009

Q2 2010

Price: 136USc/lb

•China demand returns in Q1 2010 together with North America and Europe

•FeCr production matches demand

•SA electricity price increased 25% effective 1 April 2010

•Q2 prices increased by 35%

Q3 2010

Price: 130USc/lb

•18 day Transnet strike created order backlog

•Seasonal shutdown in stainless steel production coupled with SA maintenance programmes during winter months

•Euro crisis

•Chinese govt. measures to cool economy

•Ni price drop

•Q3 price decreased by 4%

• July to September were slow months as stainless steel producers emerge from a summer lull, markets remain

relatively quiet

• Slower stainless steel demand from Europe points to weaker orders in Q4 as producers wait to assess the Q4

order book

• China stainless steel market is stable with large producers running at high utilisation rates

• Ni and FeCr plants are shutdown to meet CO2 emissions target - Mostly affected small Chinese producers

• North America recovery continues

• Q3 price rollover in Q4

Q4 2010

Price

130USc/lb

Difficult start, followed by returning demand and thereafter softens in Q3 into Q4

FeCr stock levels unchanged from Q4 2009 at 10 – 12 weeks consumption

16

Global Ferrochrome Production Breakdown

2009

in ‘000t

2010

in ‘000t

Change 10/09

in %

Other 380 691 +82

Russia, Turkey, Albania 443 522 +18

India 670 955 +43

Kazakhstan 982 1,076 +10

South Africa 2,179 3,219 +48

China 1,510 1,460 (3)

Total 6,164 7,923 +29

Charge chrome 2,438 3,648 +50

HC ferrochrome 3,726 4,275 +15

Source: Heinz Pariser / Merafe Resources / July 2010 17

Full year estimate for 2010 is 7.9m tonnes, an increase of 29% year on year

Global Ferrochrome Capacity Utilisation

Source: Heinz Pariser / Merafe Resources / July 2010 18

2010 global capacity utilisation expected to be up 22% year on year

37%

66%

86%

80%

67%

85%89%

69%

85%82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 Q2 Q3 Q4 Total

2009

2010

• SA winter closures impacted Q3 2010

Global Ferrochrome Demand

2009

in ‘000t

2010

in ‘000t

Change 09/10

in %

NAFTA 229 463 +102

European Union 1,242 1,512 +22

Japan 459 674 +47

S.Korea/Taiwan/India 1,245 1,264 +2

Others 633 723 +14

China 3,480 3,581 +3

Total 7,288 8,217 +13

Charge chrome 3,340 3,950 +18

HC ferrochrome 3,948 4,267 +8

Source: Heinz Pariser / Merafe Resources / July 2010 19

Demand is up 13% year on year and expected to exceed production in both

2010 and 2011

4. Financial Overview

20

H1 2010:

Good Recovery from Global Economic Crisis in 2009

• Revenue up by 45% year on year

• Profit for the period was R189 m equating to basic earnings per share of

8 cents compared to a basic loss per share of 3 cents in the

comparative period

• Ferrochrome inventory levels remain at low levels

• Healthy cash balance of R323m

Cost savings of 12.7% for the six months

• Increased use of the lower cost UG2 in the ore mix

• Optimisation of the reductant mix thereby limiting the impact of high metallurgical coke prices

2009 staffing decisions

• Smooth ramp up to required production levels was easily achieved because of the decision taken in

2009 not to retrench permanent employees

21

H1 2010:

Revenue Increased due to Higher Ferrochrome Prices and Sales

Tonnes Partially offset by the Strength of the Rand

H1- 2010 H1 - 2009 Change

Saleable production tonnes 148 400 128 100 +20,300

Average exchange rate 7.5 9.2 (18%)

Average ferrochrome price 118.5USc/lb 74USc/lb +44.5USc/lb

22

R824m

R129m

R518m

-R280m

R1191m

0

500

1000

1500

H1 2010:

Strong Cash Position Remains after Dividend Payment and Early Debt

Repayment. Long Term Debt of R300m Remains

R463m

R84m

-R16m

R6m

-R37m

-R75m

-R53m

-R51m

R2m R323m

200

23

H1 2010:

EBITDA Margins and ROC Recover from 2009 Downturn

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2006 2007 2008 2009 2010 June Average ***

17%

28%

58%

-5%

27%28%

12% 19%

81%

-12%

15%26%

EBITDA Margin *

Return on Capital **

* EBITDA / Revenue

** Profit/loss after tax / (Share Capital & Share Premium)

*** Relates to average over the last 4.5 years 24

• EBITDA Margin average for last 4.5 years is 28%

5. South African Specific Developments

25

Energy Efficiency

26

South African Competitiveness: The Rising Cost of Electricity

27

2009

USc per KWh

2010

USc per KWh

South Africa 3.6 4.6

India 8.7 9.7

Kazakhstan 3.2 3.3

China 8.3 8.8

Xstrata-Merafe Venture well positioned to limit impact through

energy saving initiatives

What has the Xstrata-Merafe Venture done in Response?

3.99

3.66

3.46

3.29

3.47

3.3

3.193.15 3.15

3.10 3.10

2

2.5

3

3.5

4

4.5

2002 2004 2006 2008 2010 2012 2014

MW

h /

ton

ne

How did we do it?

• Invested in Process Technology to improve

• During the past 5 years invested R2.5bn

• Envisage over the next 3 years another R900m

Bokamoso sinter plant

2007 – R800 million

Tswelopele sinter plant

2012 – R900 million

Lion – 2 large furnaces

2007 – R1,700 million

Improved by more than 25% over the past decade

28

Xstrata-Merafe Venture well Placed to Handle Higher Energy

Tariffs

Specific Energy Consumption (MWh/T)

Lion Ferrochrome

2.0

Conventional Bokamoso

MWh/tonne Alloy

Ore tonne/tonne Alloy

2.5

3.0

3.5

4.0

4.54.1

3.0

3.5

2.3

Bokamoso

*Part of Outokumpu

Xstrata-Merafe Venture anticipated the changes in the South African electricity tariffs and

invested in efficiencies:

29

Security of Mineral Rights

30

New Mining Charter: Positive News

Element Measure 2014 Target Weighting

Reporting Annually in March Non negotiable

Ownership Meaningful economic

participation

26% Non negotiable

Housing Convert hostels into family

units

100% Non negotiable

Procurement &

Enterprise Development

Procurement spend from

25% Black owned

40% cap goods

70% services

50% consumption

15%

Employment Equity Reflect demographics 40% across all levels 16%

HR Development Expenditure as a % of

payroll

5% of annual payroll 25%

Community Development Implement approved

projects

Up to date project

implementation

15%

Sustainable Development Safety, Health &

Environment

100% 29%

Plans in place for the next 5 years to ensure

compliance with all pillars of the New Mining Charter

31

Recent Project

32

Project Tswelopele:

New 600 000 tonnes per annum Pelletising and Sintering plant to be

Constructed at Rustenburg Smelter

• Initiated after the success of a similar plant, Bokamoso that was successfully

commissioned at the Wonderkop smelter in 2007

• The Xstrata-Merafe Venture will benefit from the following:

– Improvement in overall energy efficiency

– Cost benefits per tonne of ferrochrome

– More efficient use of reductants

– Reduced ratio of chrome ore usage to ferrochrome produced

– Significant environmental improvements

– Extends the life of existing mining operations

• Results in complete solution of pelletising and sintering technologies across all 5

locations

• Expected to be fully operational by 2013

• Merafe’s 20.5% share is expected to cost R190m

• Funded from current and future cash flows

33

7. Outlook

34

Stainless Steel and Ferrochrome Outlook

Stainless Steel

• The forecasted medium to long term growth remains strong – expected CAGR 5%

• Production in 2010 is expected to reach record levels

• Production will remain strong in Asia, due primarily to China estimated to be above

the 10m tonnes mark.

Ferrochrome

• Expected recovery in Q4 through to 2013 due to continued global economic growth

coupled with no new ferrochrome capacity coming on stream in South Africa in the

near future

35

Limited access to power and economically mineable chromite

reserves, amongst other barriers

• Capital cost of building smelters increased significantly

• long lead time for critical items

• Shortage of available quality ore reserves

• Shortage of artisans and skilled labour

• Escalating production costs and increased government regulation – creates barriers

to entry

• Access to funding (debt and equity markets)

• Power availability

• Tightening supply forecast

36

Positive Long term Outlook

• Long term demand fundamentals remain strong as China continues to expand

• The Xstrata-Merafe Venture will retain advantage as lowest cost SA producer

- outstanding historical cost performances of furnaces

- continuous electrical energy improvements that clearly set us apart from the rest

• Premus is the most sophisticated and competitive technology enabling us to counter

SA specific challenges

• The Xstrata-Merafe Venture will continue to grow in order to retain its position as the

largest ferrochrome producer in the world

• Strong Balance Sheet enables the Company to take advantage of the continued

global economic recovery

37

Well Positioned to Deliver Outstanding Shareholder Value

Competitive

Advantage

Strong Balance Sheet and stable shareholder base

Lowest cost producer in SA with gap widening

Energy efficiency of operations

Secured Mining Rights and Compliance with DMR

Safety Directives

Supply squeeze expected during the next 3 years

38

8. Appendix

39

New Department of Mineral Resources (DMR) Safety Directive

Geotechnical logging

Ground Penetrating Radar

Borehole cameras

Remote Drilling

40

• Bord-and-pillar mines to reduce bord widths in their shafts to 6m

• Extraction ratio’s should be limited to 75%

• All mines affected made individual representations to the DMR on action plans to

convert to more safer and conservative mining parameters

Merafe’s Approach to Safety prior to DMR Directive

Prior to DMR Directive – The Xstrata-Merafe Venture’s strategy and proactive

approach to eliminate fall of ground incidents included the following:

• Bord width’s reduced from 14m to 10m to 8m and some areas to 6m or less if

adverse geology was identified through the Trigger Action Response Plan

• The number of in-house Rock Engineers were doubled

• Geotechnical logging, GPR scanning and Borehole cameras to predict conditions

ahead of the face

• Usage of closure meters

• Evaluate usage of emulsion explosives

• Mechanised drilling

• Review of Blasting design - minimise blast damage to the surrounding rock

• Various Training Initiatives (included Interactive Virtual reality Training, Ad-hoc

underground coaching, self audits)

• Major hazard management plans included annual independent audits, ICAM

investigations done on all incidents and G-sheet meetings held two-weekly for each

section

Our conservative Pillar Factor of Safety was > 2 compared to the

industry norm of >1.5

41

Ferrochrome Industry – Strategic Importance in South Africa

• Produce about 40% of the World’s Ferrochrome

• South Africa has 73% of global chrome ore reserves

• South African Ferrochrome Industry invested about R10 billion since 2004

• Created more than 200 000 jobs

• Average annual revenue about R 20 billion

1. Gold – 2,500 MW

2. FeCr – 2,400 MW

3. Pt and other mining – 1,900 MW

4. Steel – 1,600 MW

Ferrochrome is amongst highest sector electricity consumers

42

Stainless steel product mix – what we see going forward into

remainder of 2010 / 2011

5.0

10.0

15.0

20.0

25.0

30.0

50.0

55.0

60.0

65.0

70.0

75.0

40

0 S

erie

s, 20

0 S

erie

s Sh

are

of P

rod

uc

tion

, in %

30

0 S

eri

es

Sh

are

of

Pro

du

cti

on

, in

%

2001 2011201020092008200720062005200420032002

300 Series

200 Series

400 Series

Source: Heinz Pariser / Merafe Resources / July 2010

43

Global stainless steel demand – dominated by China and

Europe with India growing

China / Hong Kong

India

Middle East

Other America

Other Europe

Other

Asia

-5

0

5

10

15

20

25

0 20 40 60 80Gro

wth

Ra

te 2

00

0 -

20

09

in

% p

.a.

Share of Stainless Steel Demand in %

Japan NAFTA

Australasia

EU

Africa

14,000

16,000

18,000

20,000

22,000

24,000

26,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

in ́

000 t G.R.: 5.3%

Source: Heinz Pariser / Merafe Resources / July 2010

44

Venture’s geographical sales fairly match geographical

stainless steel production

Source: Merafe Resources / July 2010

OTHERS11%

EUROPE24%

USA7%

ASIA 58%

Global Stainless Steel

Production

OTHERS4%

EUROPE35%

USA9%

ASIA52%

Venture’s sales of ferrochrome per region

45

Global end use of stainless steel – positive 5.3% average

growth

-4

-2

0

2

4

6

8

10

0 10 20 30 40 50 60 70 80 90

Gro

wth

Ra

te 1

99

5 -

20

09

, in

%

Share of Cumulated End Use, in%

Transport

12.8%

Electromechanical

6.4%

Building &

Construction

16.9%

Tubular

Products

13.0%

Non allocated

4.5%

Metal Goods

24.2% Engineering

22.2%

Average Growth Rate: 5.3% p.a.

Source: Heinz Pariser / Merafe Resources / July 2010

46